South Africa could very possibly switch from being an energy importer to an exporter while cutting its carbon emissions, thanks to a relatively unknown fuel. This is according to James Formby, Rand Merchant Bank (RMB) CEO, who holds out a lot of hope for green hydrogen. “Although green hydrogen is yet to be widely adopted around the world, it is one of several potential low-carbon fuels that could take the place of today’s fossil fuels.” Green hydrogen is produced by splitting water molecules using electricity. When the electricity is generated by renewable sources like wind and solar, emissions from the process are reduced to zero. It does not come from any type of fossil fuel.“South Africa is exceptionally well placed to benefit economically, environmentally and socially from the rapid development of new hydrogen technology,” said Formby. “We could become a key player – and indeed an exporter - in an emerging global hydrogen economy, which has major applications in providing fuel for transport, electricity plants and fuel cell batteries, as well as heating for industry, residential and commercial proper t y.”This was due to the country’s excellent renewables resources, particularly in solar and onshore wind, while land is relatively plentiful. It is also home to the largest platinum group metals (PGM) reserves. PGM catalysts are needed to make both hydrogen and fuel cells.Another advantage is that the existing natural gas pipelines across the country, although limited, could be repurposed for the transportation of hydrogen. This could significantly reduce the costs associated with green hydrogen development.
